CIM Dividend

Although CIM has a dividend of 0.50 with an ex-dividend date of Dec 28, you can sell covered calls on Chimera Investment Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:20 PM ET):

Chimera Investment Corp (CIM)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
19.05	19.06	19.05	+0.08	472K	-	0.0B

CIM Dividend-Like Income Using Covered Calls

With CIM at 19.05, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield	Annual Premium	Cents/Day
3%	0.57	0.2
5%	0.95	0.3
10%	1.91	0.5

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On CIM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 21	19.00	0.20	11	1.3	0.00 (0.0%)
Jan 18	19.00	0.20	39	0.4	0.00 (0.0%)

5% Yield On CIM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 21	19.00	0.20	11	1.3	0.00 (0.0%)
Jan 18	19.00	0.20	39	0.4	0.00 (0.0%)

10% Yield On CIM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 21	19.00	0.20	11	1.3	0.00 (0.0%)

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Top 10 Open Interest For Dec 21 Expiration				Top 5 High Yield
1.	DUST dividend	6.	NSSC dividend	1.	dividend
2.	NOVT dividend	7.	MOD dividend	2.	dividend
3.	MMS dividend	8.	VV dividend	3.	dividend
4.	VSI dividend	9.	EC dividend	4.	dividend
5.	DXJS dividend	10.	NTWK dividend	5.	dividend

Want more examples? CIG Dividend | CINF Dividend